1964_SECURITIES_(DISCLOSURE_OF_INTERESTS)_ORDINANCE — Page 31

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CAP. 396]

Securities (Disclosure of Interests)

[1988 Ed.

with respect to the company, for the purpose of determining the true persons who are or have been financially interested in the success or failure (real or apparent) of the company or able to control or materially to influence its policy. (2) The appointment of an inspector under this section may define the scope of the investigation (whether as respects the matter or the period to which it is to extend or otherwise) and in particular may limit the investigation to matters connected with particular shares or debentures.

(3) If application for an investigation under this section with respect to particular shares or debentures of a listed company is made to the Financial Secretary by members of the listed company, and the number of applicants or the number of shares held by them is not less than the number required for an application for the appointment of inspectors under section 142(1) of the Companies Ordinance (Cap. 32)-

(a) the Financial Secretary shall appoint an inspector to conduct the investigation (unless he is satisfied that the application is vexatious); and

(b) the inspector's appointment shall not exclude from the scope of the investigation any matter which the application seeks to have included, except in so far as the Financial Secretary is satisfied that it is unreasonable for that matter to be investigated.

(4) Subject to the terms of his appointment, an inspector's powers extend to the investigation of any circumstances suggesting the existence of an arrangement or understanding which, though not legally binding, is or was observed or likely to be observed in practice and which is relevant to the purposes of the investigation.

(5) The Financial Secretary may, before appointing an inspector, require the applicant or applicants to give security, to an amount not exceeding $50,000, or such other sum as may be prescribed by regulations, for payment of the costs of the investigation.

Investigation of share dealings

[cf. U.K. 1985 c. 6, s. 442]

34. (1) If it appears to the Financial Secretary that there are circum- stances suggesting that contraventions may have occurred in relation to a listed company's shares or debentures, of section 28 (taken with the Schedule), or of section 31(3) to (5) he may appoint one or more competent inspectors to carry out such investigations as are requisite to establish whether or not such con- traventions have occurred and to report the result of their investigations to him.

(2) The appointment of an inspector under this section may limit the period to which the investigation is to extend or confine it to shares or debentures of a particular class, or both.

Inspector's powers during investigation

[cf. U.K. 1985 c. 6, s. 446]

35. (1) If an inspector appointed under section 33 or 34 thinks it necessary for the purposes of his investigation to investigate also the ownership of any shares in or debentures of another corporation which is or at any relevant time has been an associated corporation of the listed company he shall have power to do so and shall report on the ownership of the shares or debentures of the other corporation so far as he thinks that the results of his investigation of